This one's for a Mumbaikar! - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

This one's for a Mumbaikar!

Jul 29, 2005

Thank God that no political establishment has, till now, blamed foreign intelligence agencies for the flood situation faced by the financial capital of India, Mumbai, since the past 3-4 days. Life stood standstill! Mumbaikars withstood, this time the onslaught of rains (and not bombs) as they made their way through to their homes after 24-36 hours of struggle. Even the equity markets (which remained open despite the heavy rains) seemed to cheer the spirit of the 'half underwater' man on the street. The quote, "Life must go on" was characterized to its best as Mumbai braved the 8th highest rainfall in India's history. This downpour, however, brought to forefront the loopholes (no, not drainage holes!) in the city's administrators' contingency planning systems and forecasting abilities of the Indian Meteorological Department, which again proved its abilities in predicting rains after they've already arrived! While there's no denying the fact that such a high level of rainfall was unprecedented, the dream of making Mumbai the next Shanghai has surely been shaken. Forget Shanghai, Mumbai, being India's financial capital, needs to become India's best city first in terms of infrastructure and quality public services. Shanghai is a long way ahead!

As for the stock markets are concerned, there's been nothing stopping them in creating new highs as days pass. While there are all reasons to believe that fundamentals do not justify such a momentum, how do you make believe the small investor who has 'given his all' to media reports justifying 'Buy' recommendations on stocks whose underlying companies have not performed well in the past and have serious management issues. What should a retail investor do if not give in to the 'strong' arguments that follow such recommendations? Here's a way out. Stop listening! Do not let a misguided step turn your investment venture into a speculative misadventure.

India is surely on a growth path. We understand that! But the path ahead will surely not be as benign as has been the case in the past two years. There are enough global (remember, we are a global economy now!) imbalances like the fragile US economy and interest rates, slowing China and currency adjustments, which might strike a strong negative chord anytime.

Investors, thus, have to be patient with their money. Mumbaikars can well teach others a lesson or two about this theory of maintaining discipline and balance of mind in times of uncertainty and crisis! Whatsay? Neck deep waters are navigable, but neck deep losses can sink you!


Equitymaster requests your view! Post a comment on "This one's for a Mumbaikar!". Click here!

  

More Views on News

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

How to Save Money by Exiting Stocks Before They Fall podcast (Views On News)

Sep 24, 2020

A penny saved is a penny earned. It doesn't matter where you enter. All that matter is where you exit. Watch this video to identify an opportune time to exit your investments and book profits.

ICICI Prudential ESG Fund: Aims for Sustainability (Outside View)

Sep 24, 2020

PersonalFN briefly explains the newly launched fund : ICICI Prudential ESG Fund.

What to Do if there is a Second Wave of the Stock Market Crash (Profit Hunter)

Sep 24, 2020

Here's what I think investors should do in this selloff.

IDFC Mutual Fund Starts Campaign 'SIFI'. Should Buy Into the Idea? (Outside View)

Sep 23, 2020

IDFC Mutual Fund is taking the road less travelled and hence started a campaign SIFI (SIP in Fixed Income) to promote the concept of SIP for its debt funds investors.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Sep 24, 2020 (Close)

MARKET STATS